• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

White Knight For Flailing Knight: WSJ Reports Potential Bailout Merger In The Works

Tyler Durden's picture


Earlier we said that Knight better sell itself today or it's lights out. Sure enough, here come the rumors via the WSJ:

Knight Capital is in talks with Virtu Financial, a big player in high-speed trading and "designated market maker" on the NYSE, about a potential merger or infusion of capital

And more from Dow Jones:

  • WSJ: Knight in Discussions About Possible Deal With Electronic-Trading Firm Virtu — Sources
  • WSJ: Talks Also Involve Silver Lake Partners, An Investor in Virtu — Sources
  • WSJ: Talks in Early Stages and No Deal Guaranteed — Sources
  • WSJ: Knight Also in Talks With Other Potential Funders, Partners — Sources

Will it happen? Maybe. Although we doubt it - why pay for equity value when one can pick up the functioning assets in a Chapter 363 asset sale which also sticks the creditors with all the crappy assets? Just like Barclays did with Lehman for millipennies on the dollar.

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Thu, 08/02/2012 - 12:39 | 2672688 monkeyboy
monkeyboy's picture

Bonus time!!!

Thu, 08/02/2012 - 12:52 | 2672760 RockyRacoon
RockyRacoon's picture

No doubt, we, the taxpayer, will back this "merger".

Virtu ?  What?  These guys can't even spell let alone justify the name.  The name is not even catchy, it just makes me wanna gag.

There hasn't been "virtue" on Wall Street in long time.

Thu, 08/02/2012 - 14:42 | 2673347 El Oregonian
El Oregonian's picture


Thu, 08/02/2012 - 14:18 | 2673243 AcidRastaHead
AcidRastaHead's picture

Bonus time for some.  Millipenny time for others.

Thu, 08/02/2012 - 12:39 | 2672694 fightthepower
fightthepower's picture

Fuck you Bernanke!

Thu, 08/02/2012 - 12:56 | 2672796 Brother Sebastian
Brother Sebastian's picture

Before you criticize Benny-boy, you should walk a mile in his shoes.  That way, when you criticize him, you're a mile away and you have his shoes.

Thu, 08/02/2012 - 13:05 | 2672858 Muppet of the U...
Muppet of the Universe's picture

Don't fuck Benny boy.  He might be the only person left to bail-out the futures market if these futures accounts dont get transfered to a liquid clearing firm.

Thu, 08/02/2012 - 16:43 | 2673945 OneTinSoldier66
OneTinSoldier66's picture

Thank you Brother Sebastian, that was great!

Thu, 08/02/2012 - 12:40 | 2672695 The Axe
The Axe's picture

Kenny pasternack   has wallet open......5 dollar bid soon....

Thu, 08/02/2012 - 12:40 | 2672696 buzzsaw99
buzzsaw99's picture

then they can play ping pong? great.

Thu, 08/02/2012 - 12:41 | 2672700 malikai
malikai's picture

Should be good for a little pop in their share price as the momos and headline reading bots catch knives.

Thu, 08/02/2012 - 12:42 | 2672703 Piranhanoia
Piranhanoia's picture

Smart money buying a turkey that is so dead only the feathers have any value.

Thu, 08/02/2012 - 12:43 | 2672704 mrdenis
mrdenis's picture

Captain America saves the day ...

Thu, 08/02/2012 - 12:48 | 2672737 phalfa5
phalfa5's picture

All your base are belong to us



Thu, 08/02/2012 - 12:43 | 2672705 emersonreturn
emersonreturn's picture

tyler, you invariably call it with uncanny accuracy, it's fun watching the results come in time and again.

Thu, 08/02/2012 - 12:44 | 2672717 Never One Roach
Never One Roach's picture

Some of the Largest Bagholders of Knight:


Thu, 08/02/2012 - 12:51 | 2672765 Miss Expectations
Miss Expectations's picture

FIDELITY SMALL CAP DISCOVERY FUND apparently knows what it's doing.

Thu, 08/02/2012 - 12:48 | 2672718 Mercury
Mercury's picture

Will it happen? Maybe. Although we doubt it - why pay for equity value when one can pick up the functioning assets in a Chapter 363 asset sale which also sticks the creditors with all the crappy assets? Just like Barclays did with Lehman for millipennies on the dollar.

 Résumé flow may be the best tell here...

Thu, 08/02/2012 - 12:48 | 2672728 HD
HD's picture

At least they are consistent with their HFT business model...nanosecond bankruptcy.

Thu, 08/02/2012 - 13:02 | 2672729 Jlmadyson
Jlmadyson's picture

Blah blah blah, bailout, AIG, Lehman Bros,, Bear Sterns, Margin Calls, Fannie, Freddie, CorZine.

Just another day in Wonderland.

Thu, 08/02/2012 - 12:50 | 2672750 Call me Ishmael
Call me Ishmael's picture

Didn't these guys watch Office Space? The penny and nickle skimming algo goes ape shit and the people that made it are lucky to get jobs digging ditches.

Thu, 08/02/2012 - 13:16 | 2672930 seamus3500
seamus3500's picture

or drinking margaritas on the beach with too much salt

Thu, 08/02/2012 - 12:50 | 2672756 JLee2027
JLee2027's picture

7.5 Billlion in cash on their balance sheet. What about that? Is it really not there?

Thu, 08/02/2012 - 12:51 | 2672759 alien-IQ
alien-IQ's picture

hurling a hail mary to an empty field. great strategy. What's next? blaming the shorts?

Thu, 08/02/2012 - 12:51 | 2672766 eclectic syncretist
eclectic syncretist's picture

A market maker being run by a HFT operation????!!!!


Good thing I faded that trade the NY Fed promoted for the days immediately preceding through the day after a Fed meeting.  Bastards fleeced the sheep for nearly 3% on this trip.


Thu, 08/02/2012 - 12:56 | 2672797 ArrestBobRubin
ArrestBobRubin's picture

Knight had complained publically about the blatant Facebook scam. Look what's happened. First ruined via a "glitch", then made to disapperar via a "merger". A very odd sequence of events indeed.

Critical Lessons From The Facebook Scam: A Blast From The Past

Thu, 08/02/2012 - 13:03 | 2672842 ArsoN
ArsoN's picture

nothing like a little sub rosa action to keep the house of cards from collapsing for another week or two.  

Thu, 08/02/2012 - 13:11 | 2672905 John Law Lives
John Law Lives's picture

Could it be a desperate attempt to keep the stock price afloat whilst insiders dump...

Thu, 08/02/2012 - 13:17 | 2672933 Seasmoke
Seasmoke's picture

surely Jamie smells blood in the water

Thu, 08/02/2012 - 13:34 | 2673020 Meesohaawnee
Meesohaawnee's picture

I hear there are some programmers looking for work?

Thu, 08/02/2012 - 13:45 | 2673076 Dr. Engali
Dr. Engali's picture

Knight Capital is dead. Just need Mr. market to pull the final plug.

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